2011 (11) TMI 394 - HC - Income Tax

Initiation of reassessment proceedings invalidated on technical grounds - income escaped assessment - Held that - The said questions of law were also questions of law raised in the case of Duli chand Singhania v. Assistant Commissioner of Income Tax (2003 - TMI - 11012 - Punjab And Haryana High Court) - Such questions of law have been answered against the Revenue - Appeal dismissed.

Summary

Issues:
1. Validity of initiation of reassessment proceedings
2. Adjudication of addition deleted by CIT (A)

Issue 1: Validity of initiation of reassessment proceedings
The Revenue challenged the order of the Income Tax Appellate Tribunal (ITAT) regarding the initiation of reassessment proceedings for the Asstt. Year 2000-01. The substantial question of law was whether the ITAT was correct in upholding the order of the Commissioner of Income Tax (Appeals) in deeming the initiation of reassessment proceedings as invalid, despite the income escaping assessment and the original assessment resulting in under-assessment. Reference was made to decisions of the Delhi High Court and the Gujarat High Court in similar cases. The respondent's counsel pointed out that the same questions of law were addressed in a previous case, Dullichand Singhania v. Assistant Commissioner of Income Tax, where the questions were answered against the Revenue. Consequently, the court dismissed the appeal based on this precedent.

Issue 2: Adjudication of addition deleted by CIT (A)
The second issue raised in the appeal was whether the ITAT was correct in not adjudicating on the addition deleted by the Commissioner of Income Tax (Appeals), stating that they were academic and dismissing the same without confirming the Assessing Officer's order. However, the judgment did not provide further details or analysis on this issue beyond mentioning that the appeal was dismissed based on the precedent established in a previous case.